The European Parliament adopted the Circular Economy Action Plan in 2021, with which it identifies the importance of the design phase to improve products' circularity and environmental impacts. With an environmental design approach – ecodesign – companies can proactively reduce, avoid, or eliminate adverse environmental impacts that occur during the life cycle of a product. However, the practical implementation of ecodesign is not widely studied, hence, there is little evidence indicating a comprehensive or structured use of ecodesign in companies. Moreover, current policies are not considered as sufficient to promote the systematic use of the concept. This research studies company views on drivers and barriers of ecodesign, its practical implementation means, and compiles the most important development areas for the public sector to support ecodesign implementation in companies. Based on our study, the key drivers and barriers relate to company values, customer demand, tools, information, competition, regulations, and standards, reflecting both internal and external factors. With regard to implementation, ecodesign has been a systemic and continuous activity in companies, ranging from products and services to processes and marketing, but often with no dedicated resources. Subsequently, the key development areas for public policy are the establishment of stable and predictable regulations; provision of clear and structured information; provision of ecodesign tools supporting decision‐making and which are easily available for different purposes and sectors. These mutually supportive areas are important for promoting ecodesign more systemically. In future policy actions, it would be important to further introduce interlinkages and synergies between various policy tools.